Is the Media the Perfect Contrary Stock Market Indicator?
February 11th, 2009
Capitulation theory holds that when when everyone throws in the towel and is “sure” the market is going further down, that it will then actually go up. A derivative theory, the front page/cartoonist theory holds that when you finally see doom and gloom on the front page of newsmagazines or in the cartoonist’s columns, then “everyone” now “knows” the market is going down further and, yep, at that point it starts going up… or so goes the theory.
Very Best Regards,
Joe
